Regardless of what happens in Europe, or even in Washington,
there are always stocks that are worth a look. Today I want to
consider some long candidates recently identified by researchLAB's
Multipoint Analysis Tool
.
As usual, we're looking for companies that have pulled back
recently but have moving averages that are lining up bullishly.
(For more on how to use the screener, see
this article
; to jump straight to my current results, follow
this link
.) Please treat these as starting points, not outright
recommendations.
HCA (HCA):
This hospital operator jolted higher after the Supreme Court upheld
Obamacare because the law is expected to reduce the industry's
problem with unpaid medical bills. It's now pulled back to previous
resistance around $28 and appears to have much more upside
potential than downside risk. The next earnings date hasn't been
announced, but last year it was on July 25. The last two reports
beat estimates.
Builders FirstSource (BLDR):
A relatively new name in the housing space, BLDR supplies materials
such as siding, garage doors and insulation. They have been taking
market share from local, independent companies and are organized to
compete on a national level. Earnings beat estimates the last two
quarters and the next release comes out on July 20.
Glu Mobile (GLUU):
This maker of mobile-phone games is up about 8 percent since our
mention almost two months ago. Last week it was up even more than
that but has now pulled back and looks pretty interesting down here
around $5. It might go a little lower, but the long-term trend
looks quite attractive. Earnings have beaten estimates the last
three quarters and short interest is elevated at more than
one-quarter of the float. The next set of numbers will probably
arrive in early August but the timing hasn't yet been announced.
Boston Beer (SAM):
This brewer, best known for its Samuel Adams brand, has beaten
estimates for at least the last three quarters. It ripped to an
all-time high over $120 earlier this month before a UBS downgrade
knocked it lower. But the story hasn't changed, and it looks
interesting on this pullback. Earnings will likely be released in
early August.
I also want to briefly mention the financials, which have become
engulfed in a scandal surrounding Libor since I recommended them
two weeks ago
. In my view, this development doesn't threaten the larger bullish
story in the sector, which is based on their low price-to-book
ratios and an improving credit cycle. Yes, some municipalities and
borrowers may
sue the banks
, but you can be sure that the lenders are well insulated behind a
wall of fine print. Trading has been especially bullish in JP
Morgan and
Citigroup
this week.
Disclosure:
I own HCA shares.
(A version of this article appeared in optionMONSTER's
What's the Trade?
newsletter of July 11.)